When Deputy Prime Minister Soraya Sáenz de Santamaría announced the new Spanish government’s battery of cuts worth €8.9 million plus tax increases, there were plenty of questions in the air. Why such heavy cuts? How will the new tax increases work? Will there be more cuts? The deputy prime minister’s answer to the first query was that the cuts are extreme because the 2011 deficit is 8 percent of GDP, rather than the 6 percent the outgoing Socialists had estimated. Public Administrations Minister Cristóbal Montoro offered detail about the tax rises. And the fact that the 2012 budget has yet to be presented means yes, there will be more austerity measures later in the year, although … [Read more...] about A short honeymoon for Spain’s Rajoy